Here’s our guide to some apps for financial accounting that your might want to download for your business:

Xero

One of the leading apps for financial accounting, Xero offers online services for businesses of all shapes and sizes. You’ll need the Premium package, at £30 per month, if you want accounting without limits.

Xero can submit your VAT Returns, send invoices and process transactions. It’s available online as well as having options for Android and iOS devices.

You’ll need to pay additional subscriptions for extra features like expenses, payroll and TransferWise payments.

QuickBooks

Another of the top accounting apps for business, QuickBooks is considered to be very user-friendly and integrates with HMRC.

You’ll get reminders when your VAT Return is view, and can submit it online using QuickBooks. You can also use this software to send invoices to clients, track expenses and manage your payroll, though the latter is an add-on that comes at extra costs.

QuickBooks is a very affordable option with lots of great features, but the highest package (Plus, at £12 per month) still only allows access for five users.

Sage

Sage Business Cloud Accounting is an award-winning product. Keep track of business accounts with tools like invoice sending, receipt capture, payroll facilities and automated VAT Returns. Sage also offers cash flow predictions.

You can get the highest Sage package, Plus, for £26 per month. Look out for introductory offers that could make your first few months cheaper. With Plus you also get inventory management, as well as invoicing in multiple currencies.

Free Agent

Free Agent accounting software is aimed primarily at small businesses, and can prepare VAT Returns and automate your everyday accounting tasks. Send invoices, track payments and upload expenses receipts. Free Agent can connect with your bank to automatically process your transactions. It can also be used to create business reports.

Free Agent’s top package, aimed at Limited Companies, costs £29 per month plus VAT, although it is free if you bank with NatWest, Royal Bank of Scotland or Ulster Bank. It is completely unlimited- as many users, clients and projects as you want.

Receipt Bank

Receipt Bank is a specialist app that helps you to streamline your bookkeeping processes. It keeps a digital record of all your receipts, but more importantly lets you scan receipts using a smartphone app to extract the data automatically.

It can work with foreign currencies too, converting it to your preferred one, and will identify the information you need for your records. So you can boost productivity by removing the need to manually type up all of your receipts.

Why use apps for financial accounting?

When you’re running a business, you need to be sure that you’re always in charge of the finances. From sending invoices on time to keeping track of tax, your business depends on good money management at every point in the process.

With the best accounting software, you can keep track of the day-to-day expenses and income. Your accountant can access your accounting software when you need additional support.

Are you looking for an accountant that can help you make the most of your accounting apps? Why not contact us today?

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When you make business purchases, in most cases you’ll pay VAT that you will be able to reclaim. There are some rules and restrictions, so when you reclaim VAT you’ll need to make sure that your purchases aren’t exempt.

You can only reclaim VAT on purchases made for your business. If something’s bought for both personal and business use, you will need to consider what percentage of time it’s being used for your business. You can only reclaim VAT for the business portion.

What are the VAT restrictions?

As well as being for business use, any purchase you make must meet other requirements before you can reclaim VAT.

You can only reclaim VAT on your business expenses.

You can’t reclaim VAT if your purchase involves:

Materials for VAT – exempt products

If you purchase materials or ingredients to make products that are VAT-exempt, you cannot reclaim your VAT for these purchases. VAT-exempt items can include insurance, educational provisions, credit products and subscriptions.

Business entertainment costs

If you’ve been hosting a party or entertaining clients, you can’t reclaim the VAT on these expenses. You cannot claim back VAT on the costs of entertaining anyone that’s not an employee.

When can VAT be reclaimed?

Unless a purchase is VAT exempt for being a business entertainment cost or a material for creating a VAT-exempt product, it is very likely that you will be able to reclaim the VAT.

You can reclaim VAT on:

Capital expenses

This covers everything that you’ve purchased for your business like equipment, office supplies and fittings and furnishings. You can even reclaim for purchases made up to four years before you registered for VAT.

Services

You can reclaim for services such as accounting and legal support. You can also claim for any services you paid for in the six months before your business became VAT registered.

Vehicles and Travel

You can claim back VAT for any business-related travel costs. This will include fuel or public transport.

You can also claim back VAT for any vehicles just for business use. These can include cars and vans, as well as vehicles bought for use as taxis. The vehicle must be solely for the business, not used for any personal travel.

Business Travel

VAT can be reclaimed for business travel costs, like accommodation and food. You can also reclaim VAT on tickets to events like conferences and trade shows.

Receipts for VAT claims

Always make sure you have a VAT receipt for any business purchase you make. Invoices should have a VAT number where one is applicable. If you spent less than £250, you may still be able to reclaim VAT even if it’s not listed on receipts.

Where you don’t have a VAT receipt or invoice, always make sure that you have proof of purchase that you can submit with your claim. In the event that you don’t have a receipt of any kind, a highlighted bank statement could work in its place.

Complete a VAT Return every quarter to claim back the VAT you’re entitled to. You’ll need to work out how much VAT your business paid and how much VAT it spent. If you paid more VAT than came into your business, you can reclaim the difference. If more VAT came in than went out of your business, you’ll owe the difference to HMRC.

Once you’ve filled in your VAT Return, any refund should be processed automatically and paid back within 14 days.

Contact us if you need help with your VAT review. We can help you find out what you can claim back.

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The deadlines are individual to your business – there is no standard date. Read on to find out about the deadlines and the penalties for missing them.

Filing accounts with Companies House

When you set up your company and officially incorporate it, you will be given a date for your company’s end of year. This will be the last day of the month in which you set up your business. So, if you set your company up on 3^rd July 2020, your end of financial year would be 31^st July.

You’ll need to file your first set of accounts to cover the first year and those extra days in the first month. Using the example above, that means your accounts would cover 3^rd July 2020 to 31^st July 2021. Then, every year after that, it would cover the full year alone – 1^st August 2021 to 31^st July 2022 etc.

In terms of the deadlines for filing, you have nine months after the end of the financial year to file your accounts. This is slightly different in your first year, as it’s instead 21 months after your initial incorporation date. So you would have until 3^rd March 2022 to file the first year’s accounts, and then each year after that would need to be submitted by the 31^st March.

Filing accounts with HMRC

The deadlines for submitting your Company Tax Return and for paying Corporation Tax are slightly different with HMRC. You must make sure you’ve submitted your Company Tax Return (CT600) 12 months after the end of your accountancy period – so 31^st July using the above example. You must also make sure that you have paid your Corporation Tax no later than nine months and one day after the end of your financial year – so 1^st April in the example.

Full annual accounts should include a profit and loss account, a balance sheet that lists the value of assets and liabilities, comments and a Director’s report. It may also need to include an Auditor’s report if your business is of a certain size. Accounts must be signed by the director. If your business is classed as a micro-entity you will not need to submit full accounts to Companies House but you will need to submit them as part of your Company Tax Return to HMRC.

If you are late filing your accounts, you’ll be charged. The charges vary between Companies House and HMRC.

If you are late by up to one month in submitting to Companies House, you will be fined £150. This increases to £375 for late submissions up to three months, and £750 up to six months. If you submit later than six months after your deadline, the fine is £1,500.

If you are late submitting to HMRC by just one day, you will be charged £100. This is doubled to £200 if you are late up to three months after the deadline. Up to six months’ late sees the fine increase to 10% of your unpaid Corporation Tax, with another 10% for lateness up to 12 months. If you fail to submit accounts for consecutive years, fines can be doubled.

We can help you to ensure you always submit on time and avoid these penalties. Get in touch if you would like to find out more.

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What is bookkeeping?

The main responsibilities of a bookkeeper are to record all of the financial transactions of a business – keeping the ‘book’ up to date with all the incomings and outgoings, any money that is owed to the company and so on. These days it is rarely done using a physical book and the vast majority of businesses use online software, and so bookkeeping becomes the process of updating a software system with the latest sales, bills and more.

A bookkeeper will also ensure that the flow of money in and out of the business is consistent. They will not just record bills but they will usually pay them too, and as well as keeping track of invoices that have been sent out but they will chase up payments. They will also ensure that any receipts, expense claims and other financial documents are properly filed and looked after, so that an audit can be carried out seamlessly.

Bookkeeping is important as it’s the function that makes sure you can keep track of every penny coming in and out of the business.

What is accounting?

An accountant’s main responsibilities are dealing with more senior financial responsibilities within a business, namely filing accounts with the relevant authorities and analysing the company’s financial situation to provide recommendations on tax, business growth and cash flow.

They will prepare financial statements both for internal use and to be sent to Companies House and HMRC as required. They will also be able to make adjustments to your ledgers to take future planned expenses into account.

Accounting is important because it is a means of providing advice on your tax responsibilities and on the financial future of your business.

How do they work together?

Accounting depends on bookkeeping to be able to function. Bookkeepers are the ones who’ll record and classify financial transactions, and accounts will analyse and interpret this information to give subjective advice. Accountants will prepare and file statements and returns, using the ledgers recorded by a bookkeeper. Accounting firms will offer their own bookkeeping services, but dedicated bookkeepers are not qualified to offer accounting advice.

At Red Dot Accountants we can take care of all of your bookkeeping and accounting requirements, depending on the nature of your business and scale of what you need. Get in touch if you would like to know more.

The post Bookkeeping vs Accounting: What’s the difference? appeared first on Red Dot Chartered Accountants.

In the Preston area and beyond the number of start-up businesses is increasing. In the UK there was an increase of 4.6% in 2015. However, 50% of businesses fail within the first 12 months. To avoid such failure it is absolutely crucial that business owners understand at least the basics of financial management, even if only for compliance purposes, and any reputable accountancy business can provide that insight.

Accountants throughout Preston offer a range of services depending on the size and needs of the business. Firms such as Red Dot Chartered Accountants offer a consultancy service which can be invaluable to a start-up business. Appointing the advice, experience and mentoring of an accountancy firm such as Red Dot takes that business many steps further than a basic accountancy service can, offering them previously unconsidered options to help develop a safe financial strategy.

Once a business has an accountancy firm in place, pertinent questions should be asked to ensure the business experiences the full benefit of the partnership:

• How often should we be in touch, and will this be in person or via email/phone?
  Whilst this may sound like an odd question, it is important to set expectations from the offset so that both sides can deliver.
• What do we, as a business, need to do and provide, and when?
  Agreeing timelines in advance, and having a clear understanding of what is expected, will avoid time-wasting and panic.
• What role can you play in growing my business?
  Accountants who take an holistic approach don’t just count beans, as mentioned above they evaluate businesses as a whole and can act as mentors, particularly for start-up businesses. Increasingly seen as offering a consultancy service, they have a lot to offer.
• Can you help me with my cash flow?
  Many businesses expect to create and manage their own cash flow and don’t think to ask for outside help. However the valuable experience of an accountancy firm enables them to provide a robust cash flow. Cash projections are not for the faint hearted.
• What mistakes am I going to make?
  This may sound odd, but being aware of common pitfalls and errors can give you the armour you need to avoid them. Here at Red Dot we have many examples to share!

If you are embarking on a new venture Red Dot Chartered Accountants would be delighted to talk to you about how we can provide a client-driven service to safely guide you through to year two and beyond. Please contact us on 01772 298300, or by email enquiries@reddotaccoutants.co.uk.

The post Cutting Corners – The Quickest Route To Financial Failure appeared first on Red Dot Chartered Accountants.

A by-product of this perpetual analysis is that Preston accountancy firms are being asked to take on more than the standard bean counting and reporting. Businesses are looking to their accountant to provide advice that stretches far beyond their remit of old. In response some Preston firms have incorporated extra services as part of their offering, and whilst it could be argued that firms that don’t will be left behind, it can also be said that there is room and a need for both.

By taking a holistic approach and offering all accountancy disciplines, tax advice, reporting, business advice, access to associates and regular meetings – all with a large helping of compliance – Preston firms offering a one-stop-shop are opening their doors to clients that may never have seen their worth before. On the other hand some Preston businesses prefer to cover the extra elements over and above number crunching in-house, so don’t feel the need for business support. For them, the accountant who focusses on compliance and simply processes information and produces reports might be all they need.

The key element in this widening divide between types of accountant, is that a firm must be just as careful in choosing their clients as their clients are in choosing them. A poor fit between accountant and client will only lead to difficulties, leaving the client either overwhelmed or feeling short-changed. From the offset the accountant must be clear about what is on offer and the client must be clear about what is required. Initial meetings are crucial to determine whether a consultancy service is of benefit, and if a firm has the skilled consultants available to glean vital information they can make that crucial judgement of whether the client is a good fit for the firm and vice versa.

As with all industries the financial sector needs to keep abreast of market trends, and whilst it’s important to keep up with developments in technology, client empathy and engagement are often more tricky to adapt to. By providing a rounded service where the client’s business and its needs are king, accountants can have a far bigger role to play.

Here at Red Dot Accountants in Ashton-on-Ribble, Preston, our experience through years of working with small, medium and large businesses gives us a competitive edge over other Preston based accountants. The service we provide is tailored to suit so whether this is purely to cover compliance or for a more hands on financial consultancy role, we can offer it all.

To find out how Red Dot Accountants can work with you to grow your business, go to http://www.reddotaccountants.co.uk/why-us/ or call us on 01253 708158 or 01772 298300.

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Wouldn’t you prefer to be doing more things you enjoy – whether that be jumping out of planes, enjoying your favourite hobbies, joining a gym, taking more holidays, spending more time with your family or what ever makes you happy.

As the business owner, you are in control of your destiny, so what is stopping you doing the things you would like to do?

IS IT LACK OF MONEY?

Red Dot Chartered Accountants can help you to get more money – either by saving you tax, increasing your profits or even reviewing the finances within the business.

IS IT A LACK OF TIME?

Red Dot Chartered Accountants can help by taking some of the routine tasks off you like your payroll, VAT returns and bookkeeping or we can look at ways of making your business even more efficient to release that all important time.

To find out more reasons why you should contact us, please check out our “Why Us” page.

The post Ever Felt You Want More From Life? appeared first on Red Dot Chartered Accountants.

By combining our 30 years of tax and accounting experience, with an established childcare specialist, we have created a service aimed specifically at owners of smaller businesses.

The benefits to you:

• Uses HMRC approved rules
• Easy to Implement
• Easy to Administer
• No need to change childcare providers
• Cost effective

If you want more details, then look at www.childcaretaxsavings.co.uk.

If you have previously missed out on the tax savings on childcare, what other tax savings are you losing?

For a limited period we are offering free use of our TaxAbility service – our brand new easy-to-use tax-busting checklist (worth £100).

In just a few pages it reveals 70 powerful ideas to shave many pounds – perhaps even many thousands of pounds – off your tax bills.

Just think, even if you can only shave 5% off your tax bills, if you earn £30,000 a year that tiny 5% saving adds up to an extra £26,085 in cash to spend and enjoy during your lifetime. And if your earnings are much more than £30,000 per annum then your savings could well be disproportionately higher – quite possibly as much as a 50% reduction in the tax you have to pay.

WHAT COULD YOU DO WITH THAT SORT OF MONEY?

The TaxAbility checklist has been specifically designed to help you start to identify where and how to make these sorts of savings. And it has been designed to take less than 25 minutes to complete. It could be the most profitable 25 minutes you’ll spend this year.

The post Childcare – It Needn’t Be Taxing appeared first on Red Dot Chartered Accountants.

Lytham play in the Lancashire Sunday Football League, and today won 5-1 at Chipping to secure the Youth Division Blue crown to add to the Youth Cup which they won on Thursday making it a highly successful season for manager Orrin Benford and his squad. Lytham have won EVERY league game this Season so far.

Included in the successful team is our Director’s son – Matt Neill.

Cup Match Report and photos by Eamonn McNamara:

Town maintained their 100% record in the league and cup by beating Fylde Coast rivals Thornton Cleveleys 2-0 in semi-arctic conditions at Bamber Bridge FC to win the Syndicate Trust Youth Cup Final 2016.

These two well run and excellently coached teams play in division blue of the league’s thriving youth section and they gave their all for 90 minutes in weather more akin to mid-winter than late spring and they spent the first 30 minutes sounding each other out. All that changed on 31 minutes when Lytham’s Frank Sharrat broke into the box and stroked the ball into the Thornton net from an acute angle.

And it took a fine goal from Man-of-the-Match Robert Hanslip in the 65th minute to put Lytham 2-0 up and secure the win for his team. A word of praise of the two management teams, Lytham Town manager Orrin Benford and his assistant Richard Whiteside and Shaun Rowley the Thornton manager and his assistants Philip Wing and Tracie Wing who can all be proud of the way that their charges played and conducted themselves.

The four match officials were all teenagers who have benefited from the excellent coaching they receive from Preston Referees Society, referee Jack Airey, his Assistants Kieran Chell & Chris Seed and 4th Official Shaun Taylor all did an excellent job and they have a bright future in refereeing ahead of them.

The final was played at the Sir Tom Finney Stadium, Bamber Bridge and the Youth Cup and souvenir medals were presented to the teams and officials by League President Dave Carlisle.

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The Lytham Town FC U-18 team have successfully reached the final of the Syndicate Youth Trust Cup after a thrilling semi final victory over Broughton FC.

The semi final was played at the superb UCLAN Sports Arena in Preston on Sunday 6th March 2016.

Both teams were evenly matched in a very competitive game, and it was no surprise to see the game go to extra time after finishing goalless during normal time. Lytham took the lead following a curling free kick from Jordan Cartwright just before the end of the first half of extra time. They then went 2-0 up with a cool finish from Dominic Youles. The game could have been sealed soon after, but Lytham missed a penalty following a good save from the Broughton keeper. After a frantic last 10 minutes, the game ended.

Congratulations to Lytham – we look forward to the Final (date yet to be announced).

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